IB Economics’ students- Must KnowCheck-listPaper 1Section AMicroeconomicsHL & SL1. Distinguish between movement along the demand curve and shift in demand curve.2. Distinguish between movement along the supply curve and shift in supply curve.3. How price act as a signal and incentive in free market economy?4. Resources are best allocated if left to free market economy, comment.5. Illustrate with the help of MB-MC approach, the free market economy is both allocative and productive efficient.
6. When the sum of producer and consumer surplus is maximum, market achieves both allocative and productive efficiency, explain.7. How the knowledge of cross elasticity of demand help businesses in decision making?8. How the knowledge of price elasticity of demand help businesses in decision making?9. How the knowledge of income elasticity of demand help businesses in decision making?10. Distinguish between PED and YED of firms in manufacturing and primary sector.11. Explain the difference in PES of the firms in manufacturing and primary sector.12. Define indirect taxes. Analyse the impact of indirect tax on producers and consumers. (HL students must cover impact on Consumer and producer surplus)13. Define subsidies. Analyse the impact of subsidies on both producers and consumers. (HL students must cover impact on Consumer and producer surplus)14. Define price control. Distinguish between minimum price (price floor) and maximum price (price ceiling) as means of governmnet intervention.15. Evaluate the support given by the government to farmers in agricultural sector though price control.16. Evaluate the support given by the government to the labourers through minimum wage act.17. Explain how negative externalities cause market failure.18. Explain how positive externalities cause market failure.19. Both merit goods and public goods cause market failure, comment.20. Evaluate the measures taken by the government to correct market failure caused by negative externalities.21. Evaluate the measures taken by the government to correct market failure caused by positive externalities.22. With the help of PPC model illustrate the concept of scarcity, opportunity cost and choice.23. With the help of PPC model illustrate the concept of sustainable development.
HL1. Compare and contrast perfect competition and monopoly.2. Firms under perfectly competitive market structure earns abnormal profit only in the short run, discuss.3. Firms under perfect competition are always both productive and allocative efficient, discuss.4. Is monopoly always undesirable, comment.5. What do you mean by barriers to entry? What barriers do firms face while entering into monopolist market structure?6. Firms under monopolistic market structure always earns normal profit in the long run, explain.7. Distinguish between collusive and non-collusive oligopoly.8. Define price discrimination. What role does elasticity play in implementing price discrimination?9. Firms under oligopolistic market structure always compete on non-price basis, discuss.10. Define cartel. Is forming cartel always beneficial for its member?11. Evaluate how monopoly is an example of market failure.12. Distinguish between law of diminishing marginal returns and decreasing returns to scale.13. Profit maximisation is the only goal of all the firms in the free market economy, comment.14. Explain how moral hazard and adverse selection due to asymmetric information cause market failure.15. Distinguish between economies and diseconomies of scale.
IB Economics’ students- Must KnowCheck-listPaper 1 Section BMacroeconomicsHL-SL1. Using circular flow of income model, explain various methods used for calculating national income.2. Evaluate GDP as a measure of welfare of an economy.3. Discuss how wealth affect, interest rate affect and international trade affect may cause both movement along the aggregate demand curve and a shift in aggregate demand curve.4. Distinguish between long run and short run aggregate supply curve as per neo classical perspective.5. Explain how Inflationary and deflationary gaps are self eliminating as per neo classical perspective.OR According to Neo classical perspective economy is having an inbuilt tendency of producing at full employment equilibrium, comment6. According to Keynesian perspective, economy may remain stuck in a deflationary gap for indefinite period of time, comment.7. Explain factors that cause shift in aggregate supply.8. Distinguish between cyclical unemployment and structural unemployment.9. Define NRU. Explain the causes of NRU.10. What are the economic and non-economic costs of unemployment to an economy?11. Unemployment rate may not give a true picture of the level of unemployment in any economy, why?12. Define inflation. Distinguish between demand pull inflation and cost push inflation.13. Define deflation. What are its causes?14. Deflation is less desirable than inflation, comment.15. How is the rate of inflation measures?16. What labour market reforms can help in reducing the rate of unemployment?17. Demand side policies are more effective in dealing with the problem of unemployment, compared to supply side policies, discuss.18. Evaluate the fiscal policies that governmnet can implement to deal with deflation.19. Evaluate the fiscal policies that governmnet can implement to deal with inflation.20. Evaluate the impact of monetary policies on an economy.21. Distinguish between expansionary fiscal policy and expansionary monetary policy.22. Distinguish between contractionary fiscal policy and contractionary monetary policy.23. Market oriented supply side policies are better than interventionist supply side polices to boost economic growth, evaluate.24. Demand side polices are better than supply side polices to achieve macroeconomic objectives, discuss. 25. What do you mean by automatic stabilizers? How they help the economy in times of recession?26. Evaluate the role of taxation to have more equal distribution of income in an economy.27. What are the measures taken by the government to reduce inequality in the distribution of income in an economy?28. Evaluate measures taken by the governmnet to reduce inequality in the distribution of income in an economy.29. Illustrate with the help of Lorenz curve how are income inequalities prevailing among countries compared.30. What is Gini coefficient, how it helps in measuring level of inequalities prevailing in an economy?31. There is a trade-off between income equality and efficiency, comment.32. Define economic growth. What are the causes of economic growth?33. What do you mean by PPC? What factors can cause sift in PPC?34. With the help of PPC model illustrate the concept of economic growth, potential output and actual output.35. Distinguish between absolute poverty and relative poverty.36. What may be the possible causes of poverty in any economy?35. What are the consequences of poverty for an economy?
HL 1. Define multiplier. Explain why the knowledge of multiplier is important for the governmnet before taking a decision to increase its spending.2. What do you mean by GDP deflator? What are the problems faced by GDP deflator?3. Increase in governmnet spending will have a greater multiplier effect that cut in taxes, evaluate.4. Philips curve is based on the assumption that there a tradeoff between unemployment rate and inflation. Under what circumstances this assumption does not hold true.
IB Economics’ students- Must KnowCheck-listPaper 1Section A MicroeconomicsHL & SL1. Distinguish between movement along the demand curve and shift in demand curve.2. Distinguish between movement along the supply curve and shift in supply curve.3. How price act as a signal and incentive in free market economy?4. Resources are best allocated if left to free market economy, comment.5. Illustrate with the help of MB-MC approach, the free market economy is both allocative and productive efficient.
6. When the sum of producer and consumer surplus is maximum, market achieves both allocative and productive efficiency, explain.7. How the knowledge of cross elasticity of demand help businesses in decision making?8. How the knowledge of price elasticity of demand help businesses in decision making?9. How the knowledge of income elasticity of demand help businesses in decision making?10. Distinguish between PED and YED of firms in manufacturing and primary sector.11. Explain the difference in PES of the firms in manufacturing and primary sector.12. Define indirect taxes. Analyse the impact of indirect tax on producers and consumers. (HL students must cover impact on Consumer and producer surplus)13. Define subsidies. Analyse the impact of subsidies on both producers and consumers. (HL students must cover impact on Consumer and producer surplus)14. Define price control. Distinguish between minimum price (price floor) and maximum price (price ceiling) as means of governmnet intervention.15. Evaluate the support given by the government to farmers in agricultural sector though price control.16. Evaluate the support given by the government to the labourers through minimum wage act.17. Explain how negative externalities cause market failure.18. Explain how positive externalities cause market failure.19. Both merit goods and public goods cause market failure, comment.20. Evaluate the measures taken by the government to correct market failure caused by negative externalities.21. Evaluate the measures taken by the government to correct market failure caused by positive externalities.22. With the help of PPC model illustrate the concept of scarcity, opportunity cost and choice.23. With the help of PPC model illustrate the concept of sustainable development.
HL1. Compare and contrast perfect competition and monopoly.2. Firms under perfectly competitive market structure earns abnormal profit only in the short run, discuss.3. Firms under perfect competition are always both productive and allocative efficient, discuss.4. Is monopoly always undesirable, comment.5. What do you mean by barriers to entry? What barriers do firms face while entering into monopolist market structure?6. Firms under monopolistic market structure always earns normal profit in the long run, explain.7. Distinguish between collusive and non-collusive oligopoly.8. Define price discrimination. What role does elasticity play in implementing price discrimination?9. Firms under oligopolistic market structure always compete on non-price basis, discuss.10. Define cartel. Is forming cartel always beneficial for its member?11. Evaluate how monopoly is an example of market failure.12. Distinguish between law of diminishing marginal returns and decreasing returns to scale.13. Profit maximisation is the only goal of all the firms in the free market economy, comment.14. Explain how moral hazard and adverse selection due to asymmetric information cause market failure.15. Distinguish between economies and diseconomies of scale.
IB Economics-Macroeconomics-P-1-Practice Questions
IB Economics’ students- Must KnowCheck-listPaper 1
Section BMacroeconomicsHL-SL1. Using circular flow of income model, explain various methods used for calculating national income.2. Evaluate GDP as a measure of welfare of an economy.3. Discuss how wealth affect, interest rate affect and international trade affect may cause both movement along the aggregate demand curve and a shift in aggregate demand curve.4. Distinguish between long run and short run aggregate supply curve as per neo classical perspective.5. Explain how Inflationary and deflationary gaps are self eliminating as per neo classical perspective.OR According to Neo classical perspective economy is having an inbuilt tendency of producing at full employment equilibrium, comment6. According to Keynesian perspective, economy may remain stuck in a deflationary gap for indefinite period of time, comment.7. Explain factors that cause shift in aggregate supply.8. Distinguish between cyclical unemployment and structural unemployment.9. Define NRU. Explain the causes of NRU.10. What are the economic and non-economic costs of unemployment to an economy?11. Unemployment rate may not give a true picture of the level of unemployment in any economy, why?12. Define inflation. Distinguish between demand pull inflation and cost push inflation.13. Define deflation. What are its causes?14. Deflation is less desirable than inflation, comment.15. How is the rate of inflation measures?16. What labour market reforms can help in reducing the rate of unemployment?17. Demand side policies are more effective in dealing with the problem of unemployment, compared to supply side policies, discuss.18. Evaluate the fiscal policies that governmnet can implement to deal with deflation.19. Evaluate the fiscal policies that governmnet can implement to deal with inflation.20. Evaluate the impact of monetary policies on an economy.21. Distinguish between expansionary fiscal policy and expansionary monetary policy.22. Distinguish between contractionary fiscal policy and contractionary monetary policy.23. Market oriented supply side policies are better than interventionist supply side polices to boost economic growth, evaluate.24. Demand side polices are better than supply side polices to achieve macroeconomic objectives, discuss. 25. What do you mean by automatic stabilizers? How they help the economy in times of recession?26. Evaluate the role of taxation to have more equal distribution of income in an economy.27. What are the measures taken by the government to reduce inequality in the distribution of income in an economy?28. Evaluate measures taken by the governmnet to reduce inequality in the distribution of income in an economy.29. Illustrate with the help of Lorenz curve how are income inequalities prevailing among countries compared.30. What is Gini coefficient, how it helps in measuring level of inequalities prevailing in an economy?31. There is a trade-off between income equality and efficiency, comment.32. Define economic growth. What are the causes of economic growth?33. What do you mean by PPC? What factors can cause sift in PPC?34. With the help of PPC model illustrate the concept of economic growth, potential output and actual output.35. Distinguish between absolute poverty and relative poverty.36. What may be the possible causes of poverty in any economy?35. What are the consequences of poverty for an economy?
HL
1. Define multiplier. Explain why the knowledge of multiplier is important for the governmnet before taking a decision to increase its spending.2. What do you mean by GDP deflator? What are the problems faced by GDP deflator?3. Increase in governmnet spending will have a greater multiplier effect that cut in taxes, evaluate.4. Philips curve is based on the assumption that there a tradeoff between unemployment rate and inflation. Under what circumstances this assumption does not hold true.